What should I know about corporate tax law in New York?

Once you incorporate your business, you will likely be responsible for filing a corporation tax return in New York. According to the New York State Department of Taxation and Finance, there are separate tax returns for each type of business, such as S corporations, banking corporations, farmers’ cooperatives and telecommunication companies.

The New York City Department of Finance reports that any foreign or domestic corporations in the city are subject to paying a general corporation tax if they are doing business, employing capital, occupying an office space or owning or leasing property.

It is important to note that in New York City, any corporation that has an employee or officer within the five boroughs must file the form for the general corporation tax, even if the entity is otherwise not subject to the tax. Further, S corporations must pay this general tax, despite any federal or state elections.

New York city does offer some exemptions for entities such as the following:

Certain corporations that pay the utility tax or the New York City banking corporation tax

Corporations that did not do business that year

Corporations without property in New York City

Housing development fund businesses or limited profit housing companies that were founded under the Private Housing Finance Law

Insurance corporations

If your business abides by the calendar year for fiscal purposes, you must file and pay taxes by March 15 of the following year. If you use a different calendar, then you must file your return by the 15th of the third month after your fiscal year closes.

While this information may be useful, it should not be taken as legal advice.